Joseph E. Stiglitz is especially well-known as a critic of the reigning international economic policies and the institutions that enforce them – the International Monetary Fund, the World Bank and the United States Treasury Department. After a distinguished academic career on the faculty of MIT, Yale and Stanford, Stiglitz joined the Clinton administration in 1993 as member of the Council of Economic Advisors. He later was named the Council's Chairman. In 1997 he took the post of Senior Vice President and Chief Economist at the World Bank Though a consummate political insider, Stiglitz grew increasingly disillusioned with the failures of neo-liberal policy and began to voice his thinking in public speeches. Increasingly outspoken, he eventually was ousted from his World Bank post, allegedly on orders from US Treasury Secretary Larry Summers. Since leaving the bank, Stiglitz has sharpened his criticism further, making embarrassing revelations about the role of the IMF in the Russian loan scandal, among other things. In mid 2001, he joined faculty of Columbia University and on 10 October 2001, it was announced that he would be awarded the Nobel Prize in Economic Science.

This section contains articles about Stiglitz's stormy career at the World Bank, texts of some of his speeches and policy papers, media interviews and other materials. Of the many senior staff who have resigned in disgust from the World Bank over the years, Stiglitz has provided us with a deep and intelligent critique.

Stiglitz on the IMF and World Bank

2011

In this interview, Joseph Stiglitz voices his criticism of IMF and World Bank policies. According to Stiglitz, the IMF is controlled by finance ministers and bank governors, who have created policies that favor the financial community. Furthermore, the World Bank's support for the "Washington Consensus,” a set of policies that promote "stabilization, liberalization, and privatization" of the economy, is damaging because of its emphasis on deregulation. Instead, policies should help countries develop “the right regulatory structure.” Ultimately, there must a greater adherence to democratic principles by the Bretton Woods Institutions, says Stiglitz. (The Progressive)

2009

Professor Joseph Stiglitz identifies critical mistakes, made during the Reagan, Clinton and Bush II administrations, which led to the financial crisis. Under chair Alan Greenspan, the Federal Reserve neglected its role as a regulator and helped inflate both the high-tech and the housing bubble. The US Congress allowed commercial banks to invest in high-risk projects, the government's economic policy led to excessive borrowing and lending, and politicians failed to address the underlying weakness in the US economy, even when the crisis hit. Most of the mistakes made boil down to one fundamental flaw: the belief that "markets are self-adjusting." (Vanity Fair)

2008

Nobel Laureate Joseph E. Stiglitz describes the US and other rich countries' shift towards Keynesian interventionist policy as a "triumph of reason and evidence over ideology and interests." However, the author fears that "Keynesian doctrines will be used and abused to serve some of the same interests," if government intervention is limited to bailing out the financial sector. (Guatemala Times)]

Nobel laureate Joseph Stiglitz describes how neoliberal "fundamentalists" with their narrow focus on free market and deregulation of the economy caused the deep financial crisis. Stiglitz urges governments to refrain from using standard monetary policy, such as lowering and raising the interest rate. Instead, governments should invest in infrastructure, education and technology to create stable international growth. (Vanity Fair)

According to Nobel laureate and economist Joseph Stiglitz, globalization can have a positive outcome, but only if developing countries are able to "take advantage of globalization, rather than be taken advantage of." He points out that India and China have resisted US pressure for neoliberal reforms such as the privatization of state assets and have created "stronger societies" by doing so. (New Statesman)

2007

Joseph Stiglitz argues in this Vanity Fair article that George Bush will take over Herbert Hoover's reputation as the US's worst president when it comes to handling the US economy. After eight years of Bush's presidency, the US economy is suffering from a pro-rich tax system, a record high trade deficit, sky-high oil prices and a falling dollar value. The falling dollar, along with tight labor and credit markets, may see the US facing a recession in 2008. Stiglitz forecasts that the US public will suffer the consequences of Bush's economic policies for generations to come.

Former World Bank economist Joseph Stiglitz argues that all countries generating carbon emissions must pay the cost of reducing climate change. He suggests governments increase the use of trade sanctions to punish free riders, and that governments must use every single available instrument to stop global warming. The simplest and most effective tool argues Stiglitz, is a carbon tax, which would apply directly to the emitters and secure a fair system for both rich and poor countries. (Guardian)

In this article Joseph Stiglitz recalls the 1997 East Asian financial crisis and analyzes how people and governments have not learned two important lessons from the crisis which affected not only Asian nations but the whole world. First, opening up developing countries' financial markets is dangerous. Secondly, financial institutions need to design schemes that ensure global stability and promote economic growth in developing countries. Although the risk of facing a new economic collapse is not imminent, reforms to the global reserve system are still needed to achieve global prosperity and stability. (Daily Star)

2006

Having himself been one of the main forces in putting corruption on the World Bank's agenda, Joseph E. Stiglitz in this piece makes recommendations for improving the bank's approach to combating corruption. Pointing out that bribe payments often come from Western based corporations, Stiglitz further calls on rich governments to tie tax deductibility for corporations to transparency in all dealings with foreign governments. Stiglitz also voices the concern of some critics that the corruption agenda is "itself corrupted" with rich governments using it to cut aid to countries that don't please them. (Project Syndicate)

2003

Economist Joseph Stiglitz calls for an international set of laws governing the restructuring and relief of international debt. He particularly urges forgiveness of "odious debts," accumulated by dictatorial regimes in Iraq, Congo, Ethiopia, and elsewhere, to finance the oppression of its people – who are now asked to repay the debts. (Atlantic Monthly)

"The International Monetary Fund (IMF), whose responsibility it is to ensure the stability of the global financial system, has failed miserably in its mission to stabilize international financial flows," thereby creating international financial crises. Joseph Stiglitz proposes progressive responses to these situations. These include a new, international council to monitor debt repayment and the utilization of an international currency to rebuild struggling economies. (Harvard International Review)

2002

Joseph Stiglitz hopes his Initiative for Policy Dialogue will bring the debate on alternative development strategies "beyond the usual elite of government officials and business executives to include civic leaders, activists, academics and journalists." (New York Times)

Joseph Stiglitz accused IMF former managing director Michel Camdessus of saying that for a people to recover economically, "they must suffer." Camdessus virulently denies the allegation, arguing that countries in financial crisis require strict adjustments to stabilize their economies, but "suffering" should not be a requirement. (Nouvel Observateur)

Joseph Stiglitz was chief economist of the IMF during the height of the Asian financial crisis. He verifies that IMF programs failed in all countries yet, "instead of helping the crisis-hit countries deal with the problem and save them from greater devastation, the IMF turned out to be the main bill collector for the G- 7." (Business Times, Malaysia)

Since his resignation from the World Bank, Joseph Stiglitz has not "quieted down" his criticism of international institutions. Rather, Stiglitz continues to raise awareness of the "dire consequences" of IMF policies, free trade and privatization. (Nation)

Many economists reason that Argentina's economic crisis resulted from the failure to implement IMF policies correctly and vigorously. Joseph Stiglitz disagrees, arguing that completely following the IMF plan would have worsened and expedited the crisis. (Washington Post)

Joseph Stiglitz compliments the IMF for finally realizing its "conflict of interest" in resolving debt restructuring disputes. He also supports the IMF's plan to create an international arbiter to handle bankruptcy issues and discounts the US's alternative, market-oriented plan. (Project Syndicate)

Joseph Stiglitz discusses the IMF's role in Argentina's economic crisis. According to Stiglitz, the focus should be on increasing output in Argentina rather than trying so hard to attract foreign markets. (Reuters)

Nobel Prize winner Joseph Stiglitz argues that the International Monetary Fund encourages failing policies, and that countries like Argentina ends up paying the price. This crisis can teach important lessons, such as the growing need for reform of the IMF and the global financial system. (Straits Times)

Stiglitz on Globalization and Liberalization

In the 1990s, the US experienced one of the greatest economic expansions in its history. Yet this same period of "mega-growth" also sowed the seeds of its own collapse, argues Joseph Stiglitz. The US trusted too much in the market's self-regulatory efficiency, and therefore failed to get the right balance between the market and the government. (Carnegie Council on Ethics in International Affairs)

"Globalization and Its Discontents", Joseph Stiglitz's new book, "makes a compelling case that simple-minded economic doctrine, inadequately tailored to the realities of developing countries, can do more harm than good."(Foreign Affairs)

2008

The financial crisis on Wall Street – with major banks and financial institutions running to the government for help – marks an end to a market-oriented economic organization. Former World Bank Chief Economist Joseph Stiglitz proposes a new economic model with "speed bumps" to dampen expansions of assets, and a "financial product safety commission" to make credit safer. Stiglitz further urges world leaders to make the new economic model more comprehensible to the public than the collapsing system of economic liberalization. (Huffingtonpost)

2007

Nobel laureate Joseph Stiglitz warns that Free Trade Agreements (FTAs) do not benefit poor countries. By regulating intellectual property, the FTAs restrict countries' access to generic medicine, leading to the death of thousands of poor people from curable diseases. Stiglitz argues further that the FTAs threaten the sovereignty of poor countries whose governments may lose the ability to promote local businesses and to raise funds for development through taxes and tariffs. Countries such as the US are concerned not only with trade, but with promoting "a particular agenda." (Star Online)

Joseph Stiglitz summarizes a discussion on "global growth with responsibility" by "a diverse group of concerned citizens from around the world," including leading economists and former government officials. The resulting consensus calls for a reformed G8 process which would enable participation from all countries "to discuss informally the major issues facing the world," with a focus on the four immediate problems of climate change, global imbalances, global governance, and poverty, especially in Africa. (Initiative for Policy Dialogue)

2006

World leaders increasingly agree on the unsustainable nature of the global financial imbalances represented by an enormous US trade deficit and China's growing trade surplus. Economics professor Joseph Stiglitz appreciates the growing attention given to the problem, but regrets that responses seem to address only symptoms rather than "the larger systemic problem." Stiglitz argues that neither a strengthening of the Chinese Yuan nor a cut in US governmental expenditures alone will solve the problem. Instead, expenditure cuts combined with increased upper-income taxes and reduced lower-income taxes in the US will create the necessary incentives. (New York Times)

Coinciding with the publication of his latest book, "Making Globalization Work," Nobel laureate and former World Bank chief economist Joseph Stiglitz in this Guardian article insists he does not oppose globalization, but rather agrees it "has enormous potential." However, Stiglitz argues that if governments wish to sustain globalization and avoid voters putting a stop to trade, they must manage it properly. Looking to the Scandinavian countries, Stiglitz asserts that by investing in education, research and strong social safety nets, governments can curb rising inequality and create more productive economies with higher living standards for all.

Given the "corrupt system of campaign-contributions-for-subsidies" in US politics, it came as no surprise that the Doha trade negotiations failed to produce the promised development agreement. In fact, former World Bank Chief Economist Joseph Stiglitz argues, poor countries feel relieved that they steered clear of a "development" agreement maintaining the status quo or making them worse off. World leaders must now avoid creating a myriad of unfair bilateral trade agreements. Particularly aiming at Europe, Stiglitz strongly appeals to governments not to follow the US example of unilateralism in the international trade system. (Guardian)

Economist Joseph Stiglitz questions the motives and effects of proposed US trade reforms in the Doha Round. Although the US conceded a 97 percent opening of its markets, Stiglitz proclaims that "the devil is in the details," since the remaining tariffs would pit the poor countries against each other and lead to a reduction in overall trade. Stiglitz warns that in the long run, the US may spur trade liberalizing countries to unify in opposition to US protectionist policies. (Daily Star)

This Far Eastern Economic Review article weighs the benefits of trade liberalization against the costs. While the WTO cites complete liberalization as a means towards achieving economic growth, trade agreements such as NAFTA demonstrate that it can have detrimental consequences on poor countries. Economist Joseph Stiglitz calls for a reformation of the WTO as an initial way to increase worldwide welfare.

According to economists Joseph Stiglitz and Linda Bilmes, cost estimates for the Iraq War have been vastly understated. While US congressional budget data estimates the war's cost at $500 billion through 2006, Stiglitz and Bilmes put the war's total cost at $2 trillion. Their detailed analysis includes long-term costs like ongoing healthcare for wounded troops and the war's related effects on investment, oil prices, and the growing US budget deficit. To view the report, click here. (Boston Globe)

2005

The WTO Ministerial Conference in Hong Kong could be the last step of the Doha Development Round. According to economist Joseph Stiglitz, the Doha Round "does not deserve" to have the word "development" in its name. From the start of Doha negotiations, rich countries have gotten what they want, while doing "nothing for a decade" to meet poor countries' requests. Stiglitz warns that, this time, poor countries might not accept another unfair deal. (Project Syndacate)

At the summit in Gleneagles, G8 governments approved a debt relief plan for the poorest nations. While international press has portrayed the debt relief deal as a great achievement, Nobel Price winner Joseph Stiglitz considers the decision only "a start." In addition, rich governments must increase their aid to poor countries and provide for "a fairer international trade regime." (Project Syndicate)

Struggling to survive in the competitive global market, poor countries have resorted in the past to cutting down their virgin rainforests. Now faced with the challenge of global warming and rising carbon emissions, these countries, led by Costa Rica and Papua New Guinea, have proposed a way to reduce greenhouse emissions while promoting development. Joseph Stiglitz reports on why rich countries should take heed. (Project Syndicate)

In his lecture at Hamilton College, economist Joseph Stiglitz touched upon the asymmetrical nature of globalization. As examples he mentioned rich nations' agricultural subsidies that create an uneven playing field for poor countries' exports, and intellectual property rights that can deprive poor countries of life-saving medicine and technology. Even in the United States that "has benefited enormously from globalization," only some people are experiencing the benefits, Stiglitz noted. (Hamilton College News)

Nobel laureate Joseph Stiglitz calls for changes in both rich and poor countries' natural resource policy that deplete resources and marginalize citizens in the exporting country. Stiglitz argues that resource-rich countries should use money from resource extraction towards high return investments to further long term economic growth. Furthermore, Northern countries and the International Monetary Fund must stop the demand that countries privatize resources because profits then go to foreign firms. (Excerpt from Covering Oil: A Reporter's Guide to Energy and Development)

Bilateral trade agreements boast increased wages and economic developments for poor countries, but rarely deliver on these promises. Morocco signed an agreement with the US, thereby liberalizing trade between the two countries, but Joseph Stiglitz warns that a host of complications, especially those concerning the use of generic drugs in the fight against AIDS, will follow. (New York Times)

Joseph Stiglitz writes in the New York Times that the North American Free Trade Agreement remains "controversial and even harmful" for Mexico. NAFTA did not reduce income disparities between the US and Mexico, and it did not generate many concrete economic gains. Instead, it established "a new set of rights – for business – that potentially weakened democracy throughout North America."

2003

Joseph Stiglitz urges poor countries not to listen to US sermons asking them to strive for "a mythical free-market economy." Instead, poor countries should learn from US history, and rely more on government intervention to develop financial markets and industrial power. (Guardian)

Joseph Stiglitz says people should not gloat over President Bush's fiscal incompetence. After all, Bush's irresponsible tax cuts exacerbate the US trade deficit, which in turn could have serious repercussions on a global level. (Guardian)

In this excerpt from "Globalization and Its Discontents," Joseph Stiglitz argues that globalization has worsened the conditions of millions of people. To make globalization work for all, international institutions must, in a transparent way, be more responsive to the poor, to the environment and to broader political and social concerns. (TomPaine)

Poor countries fear the Cancun negotiations will duplicate the undemocratic processes of former WTO rounds. Joseph Stiglitz presents a checklist to assess whether developed countries were sincere when they committed themselves to give up their trade interests for the sake of development. (Guardian)

Joseph Stiglitz criticizes the recent trade agreement between Chile and the US as displaying the old asymmetric exchange between the North and the South. Stiglitz particularly disapproves of the provision that aims at restricting Chile's use of capital controls for short-term speculative capital flows. Chile's capital control measures proved to be very effective in the 1990s. (The Nation)

In this excerpt from "Globalization and Its Discontents," Joseph Stiglitz argues that globalization has worsened the conditions of millions of people. To make globalization work for all, international institutions must, in a transparent way, be more responsive to the poor, to the environment and to broader political and social concerns. (TomPaine)

2002

Economist Joseph Stiglitz lauds this year's Nobel laureates in economics for demonstrating what comes as no big shock to ordinary observers of market behavior: people don't behave rationally. In fact, he argues, the bubble economy in the US was based on "exploiting investor psychology." (The Guardian)

Joseph Stiglitz's book Globalization and Its Discontents has become wildly popular in Latin America where many people blame IMF-led liberalization policies for unemployment, hyperinflation, and recession. (Christian Science Monitor)

"Globalization today is not working for many of the world's poor", says Joseph Stiglitz, who offers several suggestions, including improved safety nets in developing countries. Globalization, with its many benefits, should not be abandoned; however, it must be managed properly he says. (The Times)

Joseph Stiglitz discusses the pros and cons of globalization, and calls for social justice. He argues that successful globalizing countries determine their own pace of change, share the benefits equitably and reject the basics of the "Washington Consensus". (American Prospect)

2001

An article based on former Senior Vice President of the World Bank and Nobel Prize winner 2001 Joe Stiglitz's knowledge of the Bank and the IMF's "poverty reduction strategy". A one-size-fits-all strategy, which in fact "undermines democracy" and does more harm than good. (Observer)

2000

Former World Bank Chief Economist Joseph Stiglitz, explains concisely why protestors in Washington have legitimate reasons for accusing the IMF and others of irresponsible development policy. (New Republic)

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